Park Plaza Moves Closer to Foreclosure

Park Plaza, at Markham Street and University Avenue in Little Rock, is caught up in the brick-and-mortar sales decline that was evident before the COVID-19 pandemic but has been worsened by it. Park Plaza, like a growing number of malls today, appears to be headed for foreclosure.

Lenders are pushing forward with their foreclosure lawsuit against the owners of Park Plaza Mall in Little Rock.

Last month, Deutsche Bank Trust Co. Americas asked Pulaski County Circuit Judge Alice Gray to enter an $86 million default judgment against Park Plaza Mall CMBS LLC of Chattanooga, Tennessee, because it didn’t bother to file an answer in the case.

“The failure of the Defendant to file and serve an answer is not due to mistake, inadvertence, surprise, excusable neglect or any other just cause known to Plaintiffs,” according to Deutsche Bank’s filing.

Back in March, the bank, acting as trustee for Registered Holders of Wells Fargo Commercial Mortgage Securities, filed the suit, saying the mall defaulted on a loan after missing a payment last year. A receiver was appointed for the 404,617-SF mall at 6000 W. Markham St. in March.

In court papers, the bank said that as of July 1 it is owed $86.2 million plus court costs and attorneys’ fees. The bank is represented by attorneys Charles Coleman and Eric Berger of Wright Lindsey & Jennings LLP of Little Rock.

If the judgment is entered and isn’t paid within 10 days, the bank wants the mall sold. The lawsuit is tied to a loan of

$99.4 million originally made to Park Plaza’s owner, CBL Properties of Chattanooga, Tennessee, by Wells Fargo in 2011. The loan is secured by the mall and its 240,843-SF parking deck.

Attorney Justin Jones of Husch Blackwell LLP of Chattanooga, Tennessee, who filed a notice of appearance in the case in March, declined to comment to Whispers last week.

But he said he would forward Whisper’s message for comment to the property owner, who didn’t immediately respond.